Auckland House Prices

[PTILoveYou]

A picture is worth a thousand words.

















The future house prices in Auckland will be mind blowing if AKL population increases another 1 million by 2040!

[PTILoveYou]

Pictures other than the last one was kindly provided by Kiri Barfoot and the Auckland Property Investors Association.

[donna]

Yeah in 3 years AKL up 75 percent vs WGN down 2 percent.... down here we're looking forward to a correction upwards.

[Maccachic]

Doesn't look like any bubbles ever burst in that graph oh to have a time travel machine

[donthatetheplayer]

The picture of the harbour bridge with nothing but farmland on the north shore is mind-blowing!

[PTILoveYou]

The picture of the harbour bridge with nothing but farmland on the north shore is mind-blowing!

Kiri Barfoot said at the time, there were only 50k people living between Devonport to Warkworth!

[north shore]

Not quite the same but it is about Auckland House prices.
Went to an auction in Totaravale on the North Shore last night, 3 bed, 2 bathroom, nicely renovated, on a cross lease, cv 630,000, they eventually got the bidding up to $750,000, its now advertised as by negotiation.
The present owners paid $685,000 in Feb this year, apparently its a work transfer, which could be true as some of what they did looks like it was done for their enjoyment.
Be interesting to see what they accept in the end.

[eri]

thanks Gary + Barfoot's

interesting to overlay Wayne's 2 year interest rates

http://www.propertytalk.com/forum/showthread.php?192-Interest-Rates/page403&highlight=interest+rates

[PTILoveYou]

Lower the interest rate + easy to borrow (ie 80%+mortgages) = price increases

[Commercial Dan]

Lower the interest rate + easy to borrow (ie 80%+mortgages) = price increases

Careful Gary, you'll get caught out if you get too start for your own good. Property investing is easy when the wind is with you, a clueless blind buffoon can make money, but it's only when the tide goes out then you find out who's been swimming naked. In property it's usually the guys who buy in bad locations....good luck because up your way the wind is changing.

[PTILoveYou]

Careful Gary, you'll get caught out if you get too start for your own good. Property investing is easy when the wind is with you, a clueless blind buffoon can make money, but it's only when the tide goes out then you find out who's been swimming naked. In property it's usually the guys who buy in bad locations....good luck because up your way the wind is changing.

Thanks for the warning, you are not the first nay sayer, and you wont be the last.

I feel bad for rest of the country that havent really started and now the end is near.

[PTILoveYou]

I believe in the fundamentals:

https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcRJ4YnR7e1833XelmwZAZLmZIa-DTrknrOqMbOX1Mp78vRnZ-pdyPGzIuzr

[wormdoggy]

The housing market in Auckland has many similarities to the Vancouver housing market in British Columbia Canada. The average pricing has increased exponentially over the years and currently stands at an average market price of 922k CDN or or 1.152 NZD at a normalized exchange rate. Vancouver also has one of the most heavily populated asian community outside if China.

Vancouver and the Province of BC is looking glass in time for the Auckland housing market 10 years from now and an accurate prediction of the cultural mix and migration flow.

[Commercial Dan]

Thanks for the warning, you are not the first nay sayer, and you wont be the last.

I feel bad for rest of the country that haven't really started and now the end is near.

Like most other investors who have experienced a downturn, I only focus on building a yield, usually in good areas, close to the city. This is an all weather strategy, capital gain rarely comes into it and if I get it great, but I don't rely on it.

You won't be the first guy to enter property in a hot market thinking these conditions are carved in stone. In a downturn which comes I assure you, people can crumble if they are not careful. I hope you have a strategy for a downturn, if not the guy who's teaching you is walking with a cane. There have been plenty of investors here on this site back in 2008-09 that have never been heard from again, though 1-2 are cropping up and appearing now. Let's hope that isn't a bad omen.

[OneStepCloser]

Thanks for the warning, you are not the first nay sayer, and you wont be the last.

Hi Gary,

You may have mentioned before - could you please clarify if your portfolio as a whole is cash flow positive? And you are using P&I for your mortgage payment?

I have a feeling that some people think that your strategy relies on capital gain heavily, but in fact, I think your are simply using capital gain to accelerate your progress. Even if there is no capital gain or even price dropped, you will still be fine, just that it may take you forever to reach your goal. Is that right?